SEC News: Broker-Dealer COVID Risk Alert

What’s New: The SEC’s Workplace of Compliance Inspections and Examinations (“OCIE”) not too long ago issued a Danger Alert titled “Choose COVID-19 Compliance Dangers and Concerns for Dealer-Sellers and Funding Advisers” on August 12, 2020. This Danger Alert addressed the next subjects:

safety of buyers’ belongings

supervision of personnel

practices referring to charges, bills, and monetary transactions

funding fraud

enterprise continuity

the safety of investor and different delicate data

Whereas OCIE’s Danger Alerts all start with an admonishment that the views expressed therein are these of OCIE employees and that the Danger Alert just isn’t a rule, regulation, or assertion of the Fee, registrants ought to evaluation OCIE’s danger alerts carefully, assess them towards their enterprise mannequin and practices, and interact in remedial efforts if vital. Commonly making use of this apply will permit corporations to strongly place themselves to keep away from OCIE referrals to the Division of Enforcement.

Comings: On August 17, 2020, the SEC introduced that that Caroline A. Crenshaw had been sworn into workplace as a SEC commissioner and that, after being reappointed, Hester M. Peirce had been sworn in as properly. They had been each unanimously confirmed by the U.S. Senate on August 6, 2020. With Ms. Peirce’s reappointment and Ms. Crenshaw’s appointment, the SEC’s Fee returns to full power with the total slate of 5 Commissioners. On August 19, 2020, the SEC named a Deputy Director of the Division of Enforcement, Marc P. Berger, the Director of the SEC’s New York Regional Workplace.

Going: On August 14, 2020, SEC Division of Enforcement Co-Director, Steven Peiken, departed from the SEC. That leaves his former Co-Director Stephanie Avakian in cost because the chief of the Division of Enforcement.

With the upcoming presidential election, if there’s a change in administrations, as has been traditionally customary, we are able to anticipate the appointment of a brand new SEC Chair and plenty of extra comings and goings of the SEC’s Division and Workplace management.